Banksia customers to learn of financial future

INVESTORS of collapsed non-bank lender Banksia Securities will receive new information next week about the fate of their money.

Hundreds of people will attend two information sessions in Ballarat hosted by receiver McGrath Nicol. A spokesperson said the sessions would provide information on the position of the company and an outlook for returns.

The timing of the first payment and an estimate of subsequent payments in 2013 will also be revealed.

“The receivers have been working hard to establish what is the true state of finances of Banksia and what level of returns can be returned to debenture holders,” the spokesperson said.

“Generally, this information is provided at the earliest possible time after a company goes into receivership so that people have some clarity about their financial outlook.

“There has been strong interest from debenture holders. To date, several hundred registrations have been received for Ballarat.”

He said debenture holders would also receive a report before the December 14 information sessions.

Banksia Securities went into receivership on October 25 owing $660 million to about 3000 investors, mainly in regional Victoria, including many in Ballarat.

McGrath Nicol told debenture holders they could expect a “meaningful” return on their investment, but they were not expected to recover all of their funds.

A first payment will be made before Christmas and is expected to be in the range of 10 to 15 cents in the dollar.

The sessions are at 10am-12pm and 1pm-3pm on Decemver 14 at the Ballarat Lodge in Main Road. Call 1800 722 079 to register.